3/6/2019 Free Mock Test for JAIIB & CAIIB

Sign In/Sign
Dedicated to the Young and Energetic Force of Bankers Out

WELCOME WEBSITES

ABM-Case Studies DAILY QUIZ - CAIIB - 05-03-2019 Bank Promotion exams

ABM-Recollected Only for Bankers
ABM-Last Minute Given the following sample data: 2, 4, 8, 6, 10, and 12. RBI
BFM-Case Studies IIBF
1. Calculate Mean
BFM-Recollected IRDA
BFM-Last Minute a. 6 SEBI
Important Circulars b. 7 BCSBI
Master Circulars c. 8 CIBIL
d. 9
Bank DA Rates Banking and Insurance
Bank Holidays Ans - b Ministry of Finance
Life Ins Companies Excise & Customs
List of PSBs 2. Calculate standard deviation Income Tax Department
List of Private Banks NSE
a. 2.34
List of Foreign Banks b. 2.43 BSE

c. 3.42
d. 4.23

Ans - c

3. Calculate coefficient of Standard Deviation

a. 0.39
b. 0.43
c. 0.49
d. 0.57

Ans - c

4. Calculate coefficient of variance

a. 46.86
b. 48.86
c. 53.86
d. 56.86

Ans - b

Solution :

1. Mean - X(bar) = ∑X/n

= 42/6
=7

X - (X−X(bar))^2
2 - (2−7)^2 = 25
4 - (4−7)^2 = 9
8 - (8−7)^2 = 1
6 - (6−7)^2 = 1
10 - (10−7)^2 = 9
12 - (12−7)^2 = 25

∑X=42
∑(X−X(bar))^2=70

2. Standard Deviation = √[(∑(X−X(bar))^2)/n]

S = √70/6

http://www.jaiibcaiibmocktest.com/05-03-19-caiib.php 1/6
3/6/2019 Free Mock Test for JAIIB & CAIIB
= √35/3
= 3.42

3. Coefficient of Standard Deviation =S/X(bar)

= 3.427
= 0.49

4. Coefficient of Variation (C.V) = S/X(bar)×100

= (3.42/7) × 100
= 48.86%
.............................................

A sample of 100 observations is found to have a mean of 428.2 and a standard

deviation of 18.4.

1. What is the 90% 2-sided confidence interval for the population mean?

a. [431.2, 425.2]
b. [428.2, 431.2]
c. [425.2, 428.2]
d. [425.2, 431.2]

Ans - d

Solution:

The standard deviation of the sample mean is 18.4 / √100 = 1.84. The Z-score is 1.645.
The precision amount is 1.645 * 1.84 = 3.027. The confidence interval is [425.2, 431.2].
.............................................

2. What is the interpretation of the confidence interval in 1)?

a. There is a 95% probability that the population mean falls within the interval range
b. There is a 90% probability that the population mean falls within the interval range
c. There is a 90% probability that the sample mean falls within the interval range
d. There is a 90% probability that the population mean falls outside the interval range

Ans - b

Solution:

The interpretation has the correct level of confidence, correct population parameter, and
correct interval range.
.............................................

3. What is the 90% 1-sided upper bound confidence interval for the population mean?

a. (-∞, 430.6]
b. (-∞, 431.2]
c. (-∞, 428.2]
d. [430.6, ∞)

Ans - a

Solution:

The standard deviation of the sample mean is 18.4 / √100 = 1.84. The Z-score is 1.282.
The precision amount is 1.282 * 1.84 = 2.359. The confidence interval is (-∞, 430.6].
.............................................

4. What is the interpretation of the confidence interval in 3)?

a. There is a 98% probability that the population mean falls within the interval range
b. There is a 90% probability that the sample mean falls within the interval range
c. There is a 90% probability that the population mean falls within the interval range
d. There is a 95% probability that the population mean falls within the interval range

Ans - c

Solution:

The interpretation has the correct level of confidence, correct population parameter, and
correct interval range.
.............................................

5. What is the 90% 1-sided lower bound confidence interval for the population mean?

http://www.jaiibcaiibmocktest.com/05-03-19-caiib.php 2/6
3/6/2019 Free Mock Test for JAIIB & CAIIB
a. [431.2, ∞)
b. [430.6, ∞)
c. (-∞, 425.8]
d. [425.8, ∞)

Ans - d

Solution:

The standard deviation of the sample mean is 18.4 / √100 = 1.84. The Z-score is 1.282.
The precision amount is 1.282 * 1.84 = 2.359. The confidence interval is [425.8, ∞).
.............................................

6. What is the interpretation of the confidence interval in 5)?

a. There is a 98% probability that the population mean falls within the interval range
b. There is a 90% probability that the sample mean falls within the interval range
c. There is a 90% probability that the population mean falls within the interval range
d. There is a 95% probability that the population mean falls within the interval range

Ans - c

Solution:

The interpretation has the correct level of confidence, correct population parameter, and
correct interval range.
.............................................

7. What is the 95% 2-sided confidence interval for the population mean?

a. [424.6, 431.8]
b. [424.6, 428.2]
c. (-∞, 431.8]
d. [424.6, ∞)

Ans - a

Solution:

The standard deviation of the sample mean is 18.4 / √100 = 1.84. The Z-score is 1.960.
The precision amount is 1.960 * 1.84 = 3.606. The confidence interval is [424.6, 431.8].
.............................................

8. What is the interpretation of the confidence interval in 7)?

a. There is a 95% probability that the population mean falls outside the interval range
b. There is a 5% probability that the population mean falls within the interval range
c. There is a 95% probability that the sample mean falls within the interval range
d. There is a 95% probability that the population mean falls within the interval range

Ans - d

Solution:

The interpretation has the correct level of confidence, correct population parameter, and
correct interval range.
.............................................

9. What is the 95% 1-sided upper bound confidence interval for the population mean?

a. (-∞, 430.6]
b. (-∞, 431.2]
c. [431.2, ∞)
d. (-∞, 425.2]

Ans - b

Solution:

The standard deviation of the sample mean is 18.4 / √100 = 1.84. The Z-score is 1.645.
The precision amount is 1.645 * 1.84 = 3.027. The confidence interval is (-∞, 431.2].
.............................................

10. What is the interpretation of the confidence interval in 9)?

a. There is a 98% probability that the population mean falls within the interval range
b. There is a 99% probability that the population mean falls within the interval range

http://www.jaiibcaiibmocktest.com/05-03-19-caiib.php 3/6
3/6/2019 Free Mock Test for JAIIB & CAIIB
c. There is a 95% probability that the sample mean falls within the interval range
d. There is a 95% probability that the population mean falls within the interval range

Ans - d

Solution:

The interpretation has the correct level of confidence, correct population parameter, and
correct interval range.
.............................................

11. What is the 95% 1-sided lower bound confidence interval for the population mean?

a. [431.2, ∞)
b. (-∞, 425.2]
c. [430.6, ∞)
d. [425.2, ∞)

Ans - d

Solution:

The standard deviation of the sample mean is 18.4 / √100 = 1.84. The Z-score is 1.645.
The precision amount is 1.645 * 1.84 = 3.027. The confidence interval is [425.2, ∞).
.............................................

12. What is the interpretation of the confidence interval in 11)?

a. There is a 98% probability that the population mean falls within the interval range
b. There is a 90% probability that the sample mean falls within the interval range
c. There is a 90% probability that the population mean falls within the interval range
d. There is a 95% probability that the population mean falls within the interval range

Ans - d

Solution:

The interpretation has the correct level of confidence, correct population parameter, and
correct interval range.
.............................................

You find that the yield on a 6 year bond is 12% while that of 4 year bond is 9% what
should be the yield on a 2 year bond beginning 4 from now?

a. 18.25%
b. 16.56%
c. 12.65%
d. 20%

Ans - a

Solution

(1.12)6 = (1.09)4
(1 + r)2 =?
√(1.12)6/(1.09)4-1 = (1 + r)2
=√1.973823/1.4115823-1 =(1 + r)2
=√1.973/1.411-1
=√1.3982-1
=1.1824-1
=.1825/100
=18.25%
.............................................

A study was conducted on the IQ levels of musically precocious children. The sample
mean score of 30 such children was 132 with a sample deviation of 9.45. Find a 98%
confidence interval for the average IQ score of all such musically precocious children

a. 128, 136
b. 128, 138
c. 132, 136
d. 132, 138

Ans - a

Explanation :

http://www.jaiibcaiibmocktest.com/05-03-19-caiib.php 4/6
3/6/2019 Free Mock Test for JAIIB & CAIIB
µ ≈ 132 ± (2.326 × 9.45 / √30)
= 132 ± 4.013 ≈ 132 ± 4 or
128 ≤ µ ≤ 136.
.............................................

You want to buy an ordinary annuaty that will pay you Rs. 4000 a year for next 20
years. you expect annual interest rate wil be 8 percent over that time period. the
maximum price you would be willing to pay for the annuity is closest to ......

a. Rs. 32000
b. Rs. 39272
c. Rs. 40000
d. Rs. 80000

Ans - b

Solution

PV = A/r*(1+r)^n-1)/(1+r)^n
4000/.08*((1.08)^20-1)/1.08)20
50000*4.66095-1/4.66095
=50000*3.66095/4.66095
=50000*0.78545
=39272.57
=39272
.............................................

Mr x receive Rs. 100000, as interest on bond by end of each year for 5 year @ 5% ROI.
Calculate present value of the amount he is to receive

a. 454595
b. 127628
c. 162889
d. 432948

Ans - d

Solution

PV=A/R*(1+r)^n-1/(1+r)^n
= (100000/0.05)*(1+0.05)^5-1/(1+0.05)^5
=2000000*1.27628156-1/1.27628156
=2000000*0.27628156/1.27628156
=2000000*0.216474
=432948
.............................................

Ms. X obtained a loan of Rs. 92820 @ 10%, which he has to pay in 4 equal annual
installments. Calculate the amount of installment?

a. 22892
b. 22982
c. 28292
d. 29282

Ans - d

Explanation :

Here,

P = 92820
R = 10% p.a.
T = 4 yrs

EMI = P * R * [(1+R)^T/(1+R)^T-1)]

EMI = 92820 × 0.1 × 1.46 ÷ (1.46–1)

= 29282
.............................................

http://www.jaiibcaiibmocktest.com/05-03-19-caiib.php 5/6
3/6/2019 Free Mock Test for JAIIB & CAIIB

Home About JAIIB-CAIIB Mock Test Study Material Sample Papers Contact Us

Copyright @ 2017 : www.jaiibcaiibmocktest.com

http://www.jaiibcaiibmocktest.com/05-03-19-caiib.php 6/6